Piper Sandler lowers Arbor Realty Trust stock price target on credit issues
Investing.com - Morgan Stanley upgraded Commercial Metals Company (NYSE:CMC) from Equalweight to Overweight and raised its price target to $68.00 from $57.50. The stock, currently trading at $60.87 with a market capitalization of $6.75 billion, is trading near its 52-week high of $64.53. According to InvestingPro data, the company maintains strong financial health with a GOOD overall rating.
The upgrade follows Commercial Metals’ recent announcement to purchase two pre-cast concrete solutions companies, Foley and CP&P, for approximately $2.5 billion total.
Morgan Stanley cited the completion of these acquisitions as removing what it previously considered an M&A overhang for the company.
Commercial Metals estimates operational synergies between the acquired companies will reach $25-30 million annually by the third year, with management expecting the acquisitions to be accretive to earnings per share and free cash flow per share in the first year.
Both acquired companies demonstrate strong EBITDA margins—40% for Foley and 25% for CP&P—and were purchased at what Morgan Stanley considers reasonable multiples of 10.3x and 9.5x respectively, aligning with Commercial Metals’ strategy to expand into early-stage, steel-adjacent construction solutions.
In other recent news, Commercial Metals Company reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $1.37, slightly above the forecasted $1.35, while revenue reached $2.1 billion, exceeding the predicted $2.09 billion. Despite this positive earnings report, the company’s stock experienced a decline in pre-market trading. Additionally, Jefferies downgraded Commercial Metals from Buy to Hold, maintaining a price target of $70.00. This downgrade was attributed to valuation concerns as the stock reached its highest point of the year. Jefferies also expressed concerns over the company’s debt following its second acquisition of a precast concrete solutions supplier. These recent developments reflect a mix of positive financial performance and cautious analyst perspectives.
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